(a) a *taxable supply under section 78-50 (settlements of insurance claim) or 105-5 (supplies by creditors in satisfaction of debts); or

(b) a *taxable importation

means the GST *assessed on the taxable supply or taxable importation.

assessed net amountfor a *tax period means the *net amount *assessed for the tax period.

business includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee.

carrying onan *enterprise includes doing anything in the curse of the commencement or termination of the enterprise.

Cases

Russell v Commissioner of Taxation [2011] FCAFC 10– applicant failed to establish that during the relevant period he carried on enterprise of accountant but established that he was carrying on an enterprise of a naturist retreat – the Court disagreed with the primary judge that there was not yet a business of a naturist retreat being carried on, only the undertaking of steps which were precursors to the commencement of such a business – at [87]: in determining whether the entity was “carrying on” an enterprise at the relevant time, intention or purpose of the acquisition is relevant but not determinative – at [100]: the taxpayer’s purpose in making certain expenditures was the establishment and conduct of the naturist retreat and he had therefore commenced his enterprise – first instance Russell v FC of T [2009] FCA 1224

commercial residential premises means:

(a) a hotel, motel, inn, hostel or boarding house; or

(b) premises used to provide accommodation in connection with a *school; or

(c) a *ship that is mainly let out on hire in the ordinary course of a *business of letting ships out on hire; or

(d) a ship that is mainly used for *entertainment or transport in the ordinary course of a *business of providing ships for entertainment or transport; or

(da) a marine at which one or more of the berths are occupied, or are to be occupied, by *ships used as residences; or

(e) a caravan park or a camping ground; or

(f) anything similar to *residential premises described in paragraphs (a) to (e).

However, it does not include premises to the extent that they are used to provide accommodation to students in connection with an *educational institution that is not a *school.

ECC Southbank Pty Ltd as trustee for Nest Southbank Unit Trust v Commissioner of Taxation [2012] FCA 795 – the lease of shared and studio style student accommodation was the supply of “commercial residential premises” and not “residential premises” – at [50]: the test to be applied for the purpose of determining whether the premises are commercial residential premises involves asking whether the premises is a hotel, motel, inn, hostel or boarding house or whether it is similar to – in the sense that it has a likeness or resemblance to – any of those types of establishment. The application of this test necessarily raises questions of fact involving matters of impression and degree – at [71]: the fact that such accommodation (which might as in this case take the form of either a shared apartment or a self-contained apartment) is the principal place of residence of the individual concerned does not mean that the supply is not taxable (case analysis)

South Steyne Hotel Pty Ltd v Commissioner of Taxation [2009] FCAFC 155 – the supply of apartments in a hotel is of residential premises and not commercial residential premises – at [24]: there is nothing in the GST Act or the policy underlining the GST Act that suggests that the characterisation of an individual supply can be approached by treating it as if it were the aggregate of that supply and other supplies. It is not possible to treat the supply of an individual apartment as aggregated with the supply of all of the other apartments – at [25]: may be that each apartment is part of commercial residential premises consisting of the hotel but that, of itself, does not render an individual apartment similar to a hotel – first instance – [2009] FCA 13

consideration for a supply or acquisition, means any consideration, within the meaning given by sections 9-15 and 9-17, in connection with the supply or acquisition.

course materials in relation to an *educational course, means materials provided by the entity supplying the course that are necessarily consumed or transformed by the students undertaking the course for the purposes of the course.

dealer in precious metals means an entity that satisfies the Commissioner that a principal part of *carrying on its *enterprise is the regular supply and acquisition of *precious metal.

education course means:

(a) a *pre-school course; or

(b) a *primary course; or

(c) a *secondary course; or

(d) a *tertiary course; or

(f) a *special education course; or

(g) an *adult and community education course; or

(h) an *English language course for overseas students; or

(i) a *first aid or life saving course; or

(j) a *professional or trade course; or

(k) a *tertiary residential college course.

English language course for overseas students manes a course of study or education supplied to overseas students that:

(a) includes study or education in the English language; and

(b) is supplied by an entity that is accredited to provide such courses by a State or Territory authority responsible for their accreditation.

essential prerequisite is a qualification that is an essential prerequisite in relation to the entry to, or the commencement of the practice of, a particular profession or trade if the qualification is imposed:

(a) by or under an *industrial instrument; or

(b) if there is no industrial instrument for that profession or trade but there is a professional or trade association that has uniform national requirements relating to the entry to, or the commencement of the practice of, the profession or trade concerned – by that association; or

(b) if neither paragraph (a) nor (b) applies but there is a professional or trade association in a State or Territory that has requirements relating to the entry to, or the commencement of the practice of, the profession or trade concerned – by that association.

floating home means a structure that is composed of a floating platform and a building designed to be occupied (regardless of the term of occupation) as a residence that is permanently affixed to the platform, but does not include any structure that has means f, or is capable of being readily adopted for, self propulsion.

government related entity is:

(a) a *government entity; or

(b) an entity that would be a government entity but for subparagraph (e)(i) of the definition of government entity inn the A New Tax System (Australian Business Number) Act 1999; or

(c) a local governing body established by or under a *State law or *Territory law.

government school means a *school that:

(a) supplies any of these kinds of *education courses:

(i) *pre-school courses;

(ii) full time *primary courses;

(iii) full time *secondary courses;

(whether or not the school supplies any other education courses); and

(b) is conducted by or on behalf of an *Australian government agency;

and includes a proposed school that will meet the requirements of paragraphs (a) and (b) once its starts operation.

GST exclusive market value in relation to a supply or acquisition:

(a) other than of a *luxury car – is 10/11 of the *GST inclusive market value of the supply or acquisition; or

(b) of a *luxury car – is 10/11 of the *GST inclusive market value of the luxury car (excluding any *luxury car tax that is, or would be, payable on the supply of that car).

GST exclusive value

(a) in relation to an acquisition:

(i) other than of a *luxury car – means 10/11 of the *price of the supply of the thing being acquired; or

(ii) of a *luxury car – means 10/11 of the *price of the supply of the luxury car (excluding any *luxury car tax payable on the supply); and

(b) in relation to an importation that is a *taxable importation, means the *value of the importation; and

(c) in relation to an importation that is not a taxable importation, means the amount that would be the value of the importation if it were a taxable importation.

GST inclusive market value of:

(a) *consideration in connection with a supply; or

(b) a thing or supply or acquisition of a thing:

means the market value of the consideration or thing, without any discount for any amount of GST or *luxury car tax payable on the supply.

hospital treatment has the same meaning as in the Private Health Insurance Act 2007

inherit you inherit a freehold interest in land, a stratum unit or a long-term lease if you become an owner of the interest, unit or lease:

(a) under the will of a deceased person, or that will as varied by a court order; or

(b) by operation of an intestacy law, or such a law as varied by a court order; or

(c) because it is appropriated to you by the legal personal representative of a deceased person in satisfaction of a pecuniary legacy or some other interest or share in the deceased person’s estate; or

(d) under a deed of arrangement if:

(i) you entered into the deed to settle a claim to participate in the distribution of the deceased person’s estate; and

(ii) any *consideration given by you for the interest, unit or lease consisted only of the variation or waiver of a claim to one or more other assets that formed part of the estate.

international transport means:

(a) in relation to the export of goods – the transport of the goods from their *place of export in Australia to a destination outside Australia; or

(b) in relation to the import of gods – the transport of the goods from a place outside Australia to their *place of consignment in Australia.

invoicemeans a document notifying an obligation to make a payment.

Rulings and Determinations

GSTD 2005/2 – Austlii – Goods and services tax: is an invoice that is posted on a website ‘issued’ for the purposes of Division 29 of the GST Act?

GSTD 2005/1 –Austlii – Goods and services tax: can a recipient created tax invoice be an invoice for attribution under Division 29 of the GST Act?

GSTR 2000/34 – Austlii -Goods and services tax: what is an invoice for the purposes of the A New Tax System (Goods and Services Tax) Act 1999?

long-term lease means a supply by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) for at least 50 years if:

(a) at the time of the lease, hire or licence, or the renewal or extension of the lease, hire or licence, it was reasonable to expect that it would continue for at least 50 years; and

(b) unless the supplier is an *Australian government agency – the terms of the lease, hire or licence, or the renewal or extension of the lease, hire or licence, as they apply to the *recipient are substantially the same as those under which the supplier held the premises.

medical service means:

(a) a service for which a medicare benefit is payable under Part II of the Health Insurance Act 1973; or

(b) any other service supplied by or on behalf of a *medical practitioner or *approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the *recipient of the supply.

member :

(a) in relation to a *GST group – has the meaning given by section 48-7;

(b) in relation to a *GST religious group – means an entity currently approved as one of the members of the group under section 49-5 or paragraph 49-70(1)(a); or

(c) in relation to a *consolidated group – has the meaning given by section 705-15 of the *ITAA 1997.

mineral deposit means a deposit of *minerals, and includes a deposit of sand or gravel.

minerals has the meaning given by section 40-730 of the *ITAA 1997.

monetary prize means:

(a) any prize, or part of a prize, in the form of *money; or

(b) if the prize is given at a casino -any prize, or part of a prize, in the form of *money or in the form of gambling chips that may be redeemed for money.

money includes:

(a) currency (whether of Australia or of any other country); and

(b) promissory notes and bills of exchange; and

(c) any negotiable instrument used or circulated or intended for use or circulation, as currency (whether of Australia or of any other country); and

(d) postal notes and money orders; and

(e) whatever is supplied as payment by way of:

(i) credit card or debit card; or

(ii) crediting or debiting an account; or

(iii) creation or transfer of a debt;

However, it does not include:

(f) a collectors piece; or

(g) an investment article; or

(h) an item of numismatic interest; or

(i) currency the market value of which exceeds its stated value as legal tender in the country of issue.

International Cases

Hedqvist [2015] EUECJ C-264/14 (European Court of Justice) – bitcoin transactions are constitute the supply of services for consideration – the transactions are exempt transactions as they are to be treated the same as the exchange of traditional currencies

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The material and opinions in this site are those of the author and should not be used or treated as professional advice and readers should rely on their own enquiries in making any decisions concerning their own interests.